In the trading session of April 6th, 2023, Ramkrishna Forgings saw its scrip gain by over 9 percent after announcing its recent long-term project. The stock is currently trading at ₹308.4 per share, after gaining over 10 percent in the past 5 trading sessions.
Ramkrishna Forgings is a ₹4,900 crore market cap engineering stock. They are involved in the manufacture and supply of engineering products such as wheels, bearings, farm equipment, etc. Their products are split into three types: forged, machined, and rolled. The company was incorporated in 1981, having an industry presence of over forty years.
In a filing with BSE, the small-cap engineering stock announced that Ramkrishna Forgings and Titagarh Wagons received a letter of award (LOA) from the Ministry of Railways. The agreement, which is supposed to last a duration of twenty years, is for the manufacture and supply of forged wheels. It comes under the government’s initiative of Aatma Nirbhar Bharat. The filing shows that the contract size is considered to be approximately ₹12,226.5 crores. They will be responsible for the manufacturing and supply of 1,540,000 forged wheels, of different rolling stocks, for the M.O.A. (Ministry Of Railways) over a 20-year period.
In the last year, Ramkrishna Forgings has gained by 65 percent. In the past three quarters of FY 2023, the small-cap stock saw its revenues climb to ₹2,166 crores, against ₹2,285 crores in the previous financial year (FY2022). FY 2022 was the company’s most profitable year, netting ₹206 crores. 9M FY2023 net profits for three quarters stood at ₹169 crores. The promoters own a 46.2 percent stake, an increase from 44.9 percent in March 2020.
Written By Karan N
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